Energy companies are struggling to keep up with data centers’ monster appetite

A biblical tsunami of energy demand is sweeping across the globe and energy providers are fighting to keep their heads above water. Hyperscalers are poised to spend more than $315 billion on data center expansions, with more than 500 facilities in the known pipeline by Synergy Research Group’s tally. But even as this project tide rises, energy providers are still scrambling to build boats.  The U.S. Department of Energy noted in a December 2024 report that domestic data center energy use is set to jump from 176 terawatt hours in 2023 to between 325 and 580 TWh in 2028. That’s an expected leap from 4.4 percent of U.S. electricity consumption to 12 percent on the high end of the 2028 forecast. “Assuming an average capacity utilization rate of 50 percent, this annual energy use range would translate to a total power demand for data centers between 74 and 132 GW,” the report states.